ERP and Blockchain: Reasons to Adopt this Powerful Technological Combination

In today’s business world, the integration of advanced technologies like blockchain into Enterprise Resource Planning (ERP) systems is revolutionizing how companies manage their operations. The combination of these two systems offers unprecedented levels of transparency, security, and efficiency. In this post, we’ll explore how connecting ERP data to a blockchain network can transform your business, optimizing processes and providing a competitive advantage.

1. Evaluate the Current ERP Infrastructure

Before starting, it’s crucial to review the architecture of the company’s ERP. Modern ERP systems often come with APIs that facilitate integration with technologies like blockchain. It’s important to define which data will be transferred between both systems and what information needs to be recorded on the blockchain.

2. Choose the Right Blockchain Network

There are several blockchain networks, both public and private, that can be used for integration with an ERP. Some companies prefer private networks for privacy reasons, while others opt for public networks like Ethereum or Hyperledger for greater transparency. At Blue Room Innovation, we work particularly with the public-private CircularTrust, which allows the creation of blockchain projects by combining the advantages of both public and private networks. Maximum security and transparency at a low cost.

3. Develop Smart Contracts

Smart contracts are programs that automatically execute when certain predefined conditions are met. These can be integrated with the ERP to carry out automatic actions such as updating inventories or confirming financial transactions securely and efficiently.

4. Interconnect the ERP and Blockchain via APIs

Once the blockchain network is configured and smart contracts are developed, the next step is to connect both platforms. APIs enable ERP data to flow into the blockchain in real time, securely recording events such as invoices or inventory updates. In this case, the CircularTrustnetwork, of which we are co-creators, allows integration with over 300 data sources, many of them ERPs.

5. Ensure Data Traceability

Traceability is one of blockchain’s greatest benefits. By connecting an ERP to a blockchain network, a complete track of all interactions within the system is guaranteed, from production to the final delivery of a product.

6. Consider Scalability and Performance

When integrating blockchain into an ERP system, it’s important to assess the scalability of the blockchain network and the volume of transactions. CircularTrust enables projects with high data volumes to be carried out thanks to the use of data structures such as Merkel Tree, among others.